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The Dixie Group, Inc. (NASDAQ:DXYN) today reported financial results for the third quarter ended October 1, 2011. In the third quarter of 2011, the Company had sales of $69,607,000 and income from continuing operations of $22,000, or $0.00 per diluted share, compared with a loss from continuing operations of $1,869,000, or $0.15 per diluted share for the third quarter of 2010. Net sales increased 22.8% for the fiscal third quarter of 2011 as compared with the third quarter of 2010. For the year-to-date, sales are $204,761,000 and income from continuing operations is $1,474,000, or $0.11 per diluted share, compared with sales of $166,188,000 and a loss from continuing operations of $5,012,000, or $0.40 per diluted share, for the year-ago period. Net sales for the year-to-date are 23.2% above the same period of 2010.
Excluding items related to refinancing the Company’s Senior Credit Facility, the Company reported Non-GAAP income from continuing operations of $216,000, or $0.02 per diluted share, in the third quarter of 2011, compared with a loss from continuing operations of $1,869,000, or $0.15 per diluted share, for the third quarter of 2010.
Commenting on the results, Daniel K. Frierson, chairman and chief executive officer, said, “Dixie had strong growth in the quarter with nearly 23% improvement in sales compared to very modest growth for the industry. Our residential product sales grew 26% above the same period in 2010. This increase is in contrast with what we believe is a sales decline for the residential market. The residential carpet market, in general, has still not recovered from the recession; however, it is notably stronger at the high end than the broader market. Our commercial products had growth of 14%, which we believe is above the industry growth rate. Notable was growth in the modular carpet tile sector, which continues to exceed that of the broadloom product category in commercial products for both Dixie and the industry.